iomart Group Acquires Managed Hosting Company Titan Internet
GLASGOW, United Kingdom – iomart Group plc (AIM: IOM), IT management and cloud hosting services company, has today acquired the entire issued share capital of Titan Internet Limited, the UK’s leading managed server hosting company, for $ 3.6 million in cash at the end with an additional amount of up to £ 0.6M to be paid in April 2011.
Titan Internet has become one of the most respected and technically advanced in the UK, hosting companies, and has achieved a well deserved reputation for excellent customer delivery and service.
Titan focuses on the delivery of complex, high reliability and managing virtualized hosting solutions and has built an impressive client base, which currently manages over 1,000 servers on behalf of clients ranging from SMEs to large enterprises.
At August 31, 2009, Titan’s net assets were £ 765k with an income of £ 3.4 million, EBITDA of £ 648k and profit before taxation of £ 342K. Titan currently has net cash of approximately £ 500k.
Angus MacSween, CEO iomart Group plc, said: “We announced in June that the group aims to become the UK leader in the market relatively new cloud computing through a combination of organic growth and acquisitions. Our enviable position of having a strong balance sheet and an additional £ 10,000,000 line of credit from Lloyds Banking Group allows us to make strategic and complementary acquisitions, such as Internet Titan when they occur. ”
“On Titan we have acquired a profitable business of property management with a strong service mark that we expect to continue to grow within our group setting. I am delighted that the management team responsible for the construction of Titan is committed to further developing the business forward in our property. ”
MacSween added: “The opportunities that this acquisition is to add value through infrastructure, technology and marketing synergies are important. Accordingly, iomart expects the acquisition to be immediately earnings enhancing before costs integration synergies. ”
Christie Lee Titan Internet MD said: “We believe today’s announcement will bring enormous benefits to our employees and customers alike. We are delighted to be part of the iomart Group in such an exciting time in the evolution of hosting services. We will benefit from economies of scale, product innovation and financial support that the group gives us, and we are sure you will be able to accelerate our growth and revenue as a result. ”
Finally MacSween added: “The Group continues to make excellent progress in the energy, but the market tag embryos computing. Now we are established, gaining market recognition and a reputation for service excellence, and I think now we well placed to grow our market share quickly. cements acquisition announcement today of our intention to be a leader in the UK market in this area. ”
About iomart Group plc
iomart Group is a leading UK providers of managed hosting and cloud computing services. From a single server through a network of private cloud, iomart specializes in providing management services and hosting mission critical applications, enabling customers to reduce cost, complexity and risks associated with maintaining your own website and online applications. Physically the ownership and management of its own network infrastructure, including five state data-art centers in the United Kingdom, iomart offers world-leading levels of customer service. The Group offers a unique guarantee 100% uptime with all hosting services being designed to ensure no single point of failure. Services offered include: hosting, hosting, complex hosting solutions, content delivery networks, IP Transit, Data Center Services and Cloud Computing.
About Internet Titan
Based in Rochford, Essex, Titan Internet Ltd was founded by Christie Lee in 2001. Nearly a decade later, Titan Internet has grown every year since its inception. Titan has grown to become a major technology companies in the United Kingdom accommodation. The company currently manages over 1,000 servers on behalf of a range of clients, from SMEs to large enterprises.
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